"The plot was sold at 6.5 crore per acre. The process would be completed in 6-8 months," said a person having direct knowledge of the development. Kotak Realty Funds Group wanted to engage with a developer to develop a residential complex. It had acquired the land from Pentamedia Graphics in 2007. The land was acquired under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act, 2002.

Another person close to the development confirmed the deal. "The deal was closed recently and DTZ was involved in the transaction," he said. S Sriniwasan, CEO Kotak Realty Fund, confirmed the development. "I do not want to comment on this. We are in discussion with Homex but are yet to close the deal," said Sriniwasan. He refused to comment further.

Lorena Andrade, spokesperson of Homex, said the company is in the process of evaluating the possibility of working with Kotak Realty Fund. "The company will announce any relevant information if the relation is consolidated to start a joint project at India," she said.

Homex is a vertically-integrated home development company focused on entry-level and middle-income affordable housing segments. It is also the largest home builder in Mexico, based on the number of homes sold, revenues and net income. It has so far delivered around 270,000 homes. Its entry-level, affordable housing ranges between 452 sq ft and 818 sq ft and its middle-income apartments are 818-1,851 sq ft.

Kotal Realty Funds Group has been exiting from its investments in several marekts. It has fully exited from investments in Phoenix Mills and NDR Warehousing in Mumbai. It is in talks with various investors to make an exit from Peepal Tree Properties, a green field IT park building in Goregaon, Mumbai and Green Boulevard, a project in Noida IT Park.

Kotak India Real Estate Fund I (KIREF-I ) had purchased the 7,85,000-sq ft green field IT park building in Mumbai, developed by K. Raheja Constructions in mid 2006, for about 200 crore. It had invested about 38 crore with Noida-based developer-3C Group to develop Green Boulevard, IT/ITES space project.

"The 2007-2008 fund have finally found exits We would see large number of exit this year. More funds would be able to demonstrate healthy return," said Shobhit Jt. managing director, capital markets, Jones Lang LaSalle India.

It had made project-level investments in Golf Community in Bangalore, mid-income housing in Hyderabad, a Chennai-based residential township, while it has enterprise level investments in Lemon Tree Hotels, Pride Hotels, Sobha Developers, Lalith Gangadhar Constructions and Sunteck Realty.